Share This Article:

Self insurance on the rise



Rising healthcare costs make self-insurance more attractive

A new study from Arthur J. Gallagher & Co. reports that self-insurance is on the rise across the employer spectrum, including lower midsize, upper midsize and large employers.

The rate of employers self-insuring has increased between 8 and 10 percent since 2016, the study found.

This trend is expected to continue as costs associated with traditional, fully-insured plans become prohibitively expensive, especially for small and midsize employers.

The big benefit of self-insurance is the savings potential. Because employers pay the claims, they reap the benefit of low-claim years. Additionally there are also blended options, where employers can take on less risk and still benefit in low-claim years while minimizing risk in high-claim years.

Employers are also evaluating other options for cost-containment. Some of the tactics organizations expect to adopt by 2019 include cost-transparency tools, healthcare decision support and reference-based pricing for healthcare services.

Bernard Health has more than a decade of experience helping employers adopt these and other strategies to create sustainable benefit plans.

In our experience, we’ve found that self-insuring is an option for employers with as few as 25 employees. Concerned your organization can’t withstand a bad month of claims, or worried about losing your insurance network? Learn more about why these self-insurance myths shouldn’t keep you from considering alternate funding methods here.

Bernard Health clients also have access to BerniePortal, an industry-leading benefits and HR platform, which provides both cost-transparency and decision support tools to help employees make cost-effective decisions around their benefits.

To learn more about how Bernard Health and BerniePortal and improve your benefits plan, click below.

New Call-to-action

Share This Article:

Related Posts

Check these items off your list before 2019 As the end of the year...

  How to get more transparency and better control over healthcare costs Benefits are...

You’re likely spending too much on your employees' prescriptions As a self-insured...

  New bills could expand qualified expenses and contribution limits In July, the House...

Submit a Comment